Major hedge funds and institutional investors have begun a significant rotation of capital, moving billions out of high-growth Big Tech stocks and into traditional, less volatile sectors like utilities, healthcare, and consumer staples. This shift reflects rising investor concern over sustained high interest rates, geopolitical instability, and a potential deceleration in the consumer tech spending cycle. The movement signals a defensive posture, prioritizing stable earnings and dividend yields over speculative growth. Analysts view this as a key indicator of investor sentiment turning cautious on market volatility, seeking shelter in sectors historically resistant to economic downturns.
Analysts Note Sharp Shift of Capital into Utilities and Healthcare
